What do you know about these Brands?

 Identify the Brand’s Industry Category &

 Explain what is common to these ..

 Hertz & Marriott

 Hertz & Marriott & McDonalds
 Hertz & Marriott & McDonalds & American Express
 Hertz & Marriott & McDonalds & Amex & Allianz ….

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 To a Joint Exploration of

Services Marketing

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 Have you been spending on ….?

 Education / Hostel Fees / Mess Charges

 Eating Out / Dining
 Entertainment / Movies
 Transportation / Autorickshaws
 Mobile Telephony
 Cybercafe / Websurfing / Email

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 Broad Learning Objectives

 Nature & Imp of Services Marketing

 Difference vis-à-vis Product Marketing
 Unique Characteristics of Services
 Challenges in Marketing of Services
 Strategies for Services Marketing
 Understanding nuances within sector

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 Services Marketing

Getting the fundamentals right

….

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 Economic Significance of Services

 ALL developed economies are characterised

by huge activity in the services sector.
 Services are the most vibrant component of GDP.
 Services are the engine of growth & economic
prosperity.

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Services Sector :
The Global Powerhouse
Country % GDP % Emplyd

U.S.A 72 78
France 64 69
U.K 63 66
Canada 62 66
Japan 57 61
India ? ?
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Global Majors in Services

MasterCard / Visa
CitiCorp / Amex
Marriott /
InterContinental
Macdonald’s / Pizza Hut
Hertz / Avis
Prudential / Allianz

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Services :The Indian Scenario
Country % GDP % Emplyd

U.S.A 72 78
France 64 69
U.K 63 66
Canada 62 66
Japan 57 61
India 51 42
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 Services :The Indian Scenario

The Growth Story in India :

 Share of GDP up from 26% in 1980s to

40 % + in 2000 & 51% in ‘04 & nearly 54% in 2005.
 Fastest growing sector for 15 years in a row.
 Biggest contributor to exports for 10 years in a row.
 Highest PCI for those in employment.
 Creating new jobs at 3:1 to Industry.

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 Proliferation of Services

Older Economy = > New Economy = >

Banking & Insurance Mobile Telephony

Transportation Hospitals & Healthcare
Tourism & Hotels Personal Care
Public Utilities Education & Training
Auditing & Taxation Mngment Consulting

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Proliferation of Services – Category Examples

Finance :
Communication :
 Retail Banking
 Basic Telephony
 Corp Banking
 Mobile Telephony
 Investment Mngment
 Video Telephony
 Leasing
 Couriers
 Credit Risk Rating
 Postal Dept
 Insurance & Risk
 Radio
Mngmt
 Television

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Proliferation of Services – Category Examples

Marketing : Entertainment :
 Advertising  Movies
 Sales Promotion  Video Parlours
 Event Management  Game Parlours
 Telemarketing  Theme Parks
 Market Research  Discos
 Consultancy  Events

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Why study about services ?

 Careers in ‘pure’ service industries

 Careers in ‘product + service’ industries
 Careers in Consulting
 Entrepreneurship

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 Services Boom : Cause & Effect

Causal Factor Effect / Expectn Services Spawned

More Affluence Increasing Spend Laundry & Ironing

Comfort - CPO Law n Maintenance
Utilities Bill Payment

Incr Automation More Leisure Time Holiday Resorts

Fitness/Yoga/Health Centre
M-plex Entertainment Centre

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 Factors driving services growth

Shift away from Industrial Economy

New jobs creation is 3 : 1
Emphasis on Excellence , esp B2B
Core Competence = >Process = > BPO
Strategic Competitive Advantage
Low product differentiation
Automobiles / Computers / Telephony

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 Factors driving services growth

Major developments in Technology

Satellite Com =) Real Time =) ITES
Information & Comncn Explosion
Global Village =) Customer Needs
Customer Focus =) Performance Linkages
Value seeking customers =) Amex Cards
Professionalisation of Education
Quality & Quantity of Skillsets

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